A new paradigm for our investors?

Beyond delivering the bottom line on a sustained basis for their businesses and championing CSR, our investors may want to take on a new paradigm – for example: nation-building is farther up the “value chain”? The old paradigm can’t be blame on anyone – it comes from our culture, history and tradition? But we can always be better?

As investors, they are as heeled, if not more, as economists to speak to the power of investment? It is laudable that our biggest investors are raising capital spending – but what can their new vision be?

The DTI secretary wants to showcase Makati, Ortigas and Bonifacio to attract foreign investors. We moved our commercial hub from Manila because of its density – to Quezon City to Makati to Ortigas to Bonifacio – but it appears we’re back to square-one, i.e., a CSR concern? Should we develop a truly 21^st century commercial hub – where the open spaces and greenery make it people- and eco-friendly? What about the other basics like parking and traffic management, and of course, power – i.e., they do raise productivity? In short, competitive advantage must be the yardstick? (Disclosure: Many years ago the writer’s regional team made investment decisions for an MNC. It really is a very simple undertaking: the host country ought to be a viable, competitive location for a regional if not global venture. And countries that have a 360-degree view of what it entails usually win out; and our neighbors do, consistently – and we Filipinos can develop a strong outward-looking mindset so that our perspective won’t be restricted and be competitive instead? For instance, the efforts of the Administration to make NAIA visitor-friendly is a good example – simple yet profound?)

It is for all to see that we need to double our gross investments (as a percentage of GDP) to elevate our competitiveness – and mirror the gains made by our neighbors? When and who can take us there? Our economic development is behind, not in years, but in decades? And so we need to get our GDP substantially up – or the requisite costs of social services spelled out by the various agencies to address poverty will remain a blue sky? And in that scenario the paperwork necessary to keep score against our Millennium Development Goals will remain just that, paperwork?

Strategic philanthropy is most welcome but we need investments geared for global competitiveness and innovation if we are to leapfrog economic development? Given the influence of our local investors to Philippine society, they could take up the cudgels for industry to move up the “value chain” – from delivering the bottom line on a sustained basis to nation-building, and beyond CSR as we know it?

It’s kind of the administration to leave a tag line for the benefit of our local investors while preparing for the trip to the US to drum up investments – that local investors will have first crack? Yet we can only invoke culture, history, tradition, nationalism, patriotism – and whatever else – to a certain point? Or the rhetoric could indeed relegate us to basket case of the region – i.e., characterized by massive poverty; and competing vested interests unwittingly reinforcing our crab mentality, taking the whole country down? Our instinct for inclusion may be meant to accommodate the best ideas from every constituency, but in pursuing a major economic activity it doesn’t work because it simply isn’t doable? Perfection is not of this world – continuous improvement is, or why to be holier than thou is folly?

Bottom line: It is imperative that we cover the shortfalls we’ve incurred over decades in capital, technology, talent and market – and our investors, in the name of nation-building, could play a crucial role in leading the endeavor: show us what the global economy can offer, and not be left behind?